ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

 

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note

HB 2328: municipal corporations; water supply; rates

Sponsor: Representative Marshall, LD 7

Committee on Natural Resources, Energy & Water

Overview

Restricts certain municipal corporations from charging residents who live outside the boundaries of a municipality from being charged a higher rate for water than residents living within the boundaries of the municipality.

History

Current law allows municipal ownership of public utilities to engage in any business or enterprise which may be engaged in by persons by virtue of a franchise from the municipal corporation, and may construct, purchase, acquire, own and maintain, within or without its corporate limits, any such business or enterprise. This includes engaging in a domestic water or wastewater business (A.R.S. § 9-511).

 Municipalities are prohibited from increasing rates, fees or service charges without:

1)   preparing a written report or supplying data supporting the increased rate or rate component, fee or service charge;

2)   adopting a notice of intention by motion at a regular council meeting to increase water or wastewater rates or rate components, fees or service charges;

3)   set a date for a public hearing on the proposed increase that shall be held at least sixty days after adoption of the notice of intention; and

4)   publishing a copy of the notice of intention showing the date, time and place of the hearing one time in a newspaper of general circulation within the boundaries of the municipality not less than twenty days before the public hearing date (A.R.S. § 9-511.01).

Provisions

1.   Prohibits a municipal corporation, in a county that meets specific population criteria, that provides water to residents who live outside the boundaries of the municipality that the municipal corporation serves from charging a rate for water to residents that live outside the boundaries of the municipality greater than the rate for water service within the boundaries of the municipality.

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5.   Initials CW                      HB 2328

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